Why is the rate of deforestation frequently higher than would be socially optimal?
a. Forests generate benefits, such as oxygen production and erosion control, that go to those who harvest the trees.
b. The increased demand for fossil fuels to replace biofuels is major driver of deforestation.
c. Deforestation generates costs, such as soil erosion and reduced production of atmospheric oxygen, that are entirely borne by those who harvest the trees.
d. Population pressure coupled with a lack of incentives to conserve open-access resources results in deforestation.
d
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Who pays the interest on government debt for the money it borrows today?
A) future generations of taxpayers B) the Congressional Budget Office C) the Federal Reserve D) The government does not pay interest on money it borrows.
In a closed economy, public saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) T - G - TR B) Y - C - T + TR C) Y - G - T D) Y - C - T